EXECUTIVE EMPLOYMENT AGREEMENT FIRST CHESTER COUNTY CORPORATION THE FIRST NATIONAL BANK OF CHESTER COUNTY and KEVIN C. QUINN

 

 

 

 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

FIRST ▇▇▇▇▇▇▇ COUNTY CORPORATION

 

THE FIRST NATIONAL BANK OF ▇▇▇▇▇▇▇ COUNTY

 

and

 

▇▇▇▇▇ ▇. ▇▇▇▇▇

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT made this 27th day of June, 2008, by and between FIRST ▇▇▇▇▇▇▇ COUNTY CORPORATION, a Pennsylvania business corporation, and THE FIRST NATIONAL BANK OF ▇▇▇▇▇▇▇ COUNTY, a wholly-owned subsidiary of First ▇▇▇▇▇▇▇ County Corporation and a national banking association with its principal offices located at ▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ (hereinafter individually referred to as “Corporation” and “Bank” respectively, and collectively referred to as “FNB”) and ▇▇▇▇▇ ▇. ▇▇▇▇▇, of West Chester, Pennsylvania (hereinafter referred to as “▇▇▇▇▇”).

▇▇▇▇▇ is the President of the Corporation and the Bank and a member of the Boards of Directors of the Corporation and the Bank and has served as Executive Vice President, Financial Management Services Division of the Corporation continuously since January 1, 1998 and has served as an executive employee of the Bank continuously since November 7, 1983; and ▇▇▇▇▇’▇ leadership skills and services have constituted a major factor in the successful growth and development of FNB.

FNB desires to employ and retain the experience and financial ability and services of ▇▇▇▇▇ as President from the effective date hereof and to prevent any other business in competition with FNB from securing the benefit of his services, background and expertise in the banking business.

The terms, conditions and undertakings of this Agreement were submitted to and duly approved and authorized by the Boards of Directors of both the Corporation and the Bank at separate meetings.

 

 

NOW, THEREFORE, in consideration of the foregoing recitals, which are hereby incorporated by reference, and intending to be legally bound hereby, the parties hereto agree as follows:

FNB hereby employs ▇▇▇▇▇ as the President of the Corporation and the Bank, and ▇▇▇▇▇ hereby accepts such employment, under and subject to the terms and conditions hereinafter set forth.

Subject to the provisions for termination of this Agreement provided in Paragraph 6 hereof, the term of this Agreement shall be for a period of three (3) years, commencing January 1, 2008, and terminating December 31, 2010 (the “Term”). On January 1, 2009 and on each succeeding January 1, the Term shall be extended automatically for one year, unless either of the following two conditions is met: (a) FNB or ▇▇▇▇▇ give written termination notice pursuant to Section 5 hereof, or (b) FNB or ▇▇▇▇▇ agree to a mutually acceptable date on which to terminate this Agreement.

During the Term of this Agreement, FNB shall pay ▇▇▇▇▇ a salary (hereinafter referred to as “Compensation”) and provide ▇▇▇▇▇ with life, health and disability insurance coverage, retirement (qualified and nonqualified) benefits, vacations, bonuses, and other benefits (hereinafter collectively referred to as the “Benefits”), the amounts and nature of which shall be fixed by the Boards of Directors of the Corporation and the Bank from time to time and set forth on the attached Exhibit “A”; provided, however, that in no event shall ▇▇▇▇▇’▇ Compensation be less than one hundred percent (100%) of the Compensation set forth on Exhibit “A”, and in no

 

 

event shall ▇▇▇▇▇’▇ Benefits be less than or materially different from the Benefits he is to receive as of the date of this Agreement.

(a)       Position and Duties. ▇▇▇▇▇ shall be employed as the President of the Corporation and the Bank, and, except as set forth in Section 5 hereof, shall continue to serve as the President of the Corporation and the Bank throughout the entire Term. In no event shall ▇▇▇▇▇ be employed by the Corporation or the Bank during any calendar year subsequent to 2007 at a lower position or rank and any such diminution in position or authority shall be considered a breach of this Agreement. ▇▇▇▇▇ shall devote his full time and efforts solely to the business of FNB and shall diligently, efficiently and effectively perform such duties as shall be assigned to him, which shall consist of the general and active management of the business of FNB and such other duties of supervision and management as are generally vested in the office of President of a corporation or as are set forth in job descriptions established by the Boards of Directors of the Corporation and/or the Bank for such offices. ▇▇▇▇▇ shall at all times during the Term of this Agreement refrain from doing any act, disclosing any information or making any statements to any person other than officers of FNB which may result in the disclosure of confidential information or adversely affect the good reputation of FNB in the community or which might adversely affect the professional or business relationship between FNB and any business, depositor, borrower or any other person with whom FNB is doing business or is contemplating doing business.

(b)       Office and Support. FNB shall provide ▇▇▇▇▇ with an office, secretarial assistance and such other facilities and support services as shall be suitable to ▇▇▇▇▇’▇ position and responsibilities as set forth above and as may be necessary to enable ▇▇▇▇▇ to

 

 

perform such duties effectively and efficiently.

(c)       Location of Office. In connection with ▇▇▇▇▇’▇ employment by the Corporation and the Bank, ▇▇▇▇▇ shall maintain his office at the principal executive offices of FNB located at ▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇, or at such other office as the Board of Directors of the Corporation or the Bank may select within the immediate vicinity of West Chester, Pennsylvania.

(a)       Death. If ▇▇▇▇▇ dies during his employment hereunder, his Compensation and Benefits hereunder shall terminate, and his bonus (if any) shall be prorated as of the last day of the third month after the month in which he dies.

(b)       Disability. If ▇▇▇▇▇ shall become disabled (as determined by FNB’s insurance carrier or a physician of its choice) during the Term, then from and after the date upon which it is determined that ▇▇▇▇▇ became disabled and until such time as ▇▇▇▇▇ returns to the full time employment at FNB, he shall not receive his Compensation and Benefits, but shall only be entitled to receive disability benefits as are provided under the disability insurance and/or salary continuation policy covering ▇▇▇▇▇ which is maintained in force by FNB at the time such disability occurs. FNB shall maintain a disability insurance policy or salary continuation policy covering ▇▇▇▇▇ during the entire Term, and FNB shall not cause or suffer any termination, lapse, suspension or modification of any of such policies or any reductions in the amounts of coverage provided thereunder without first giving ▇▇▇▇▇ at least thirty (30) days prior written notice thereof.

(c)       For Cause. The Board of Directors of the Corporation or the Bank may terminate this Agreement at any time if ▇▇▇▇▇ is convicted of a crime which is a felony or

 

 

misdemeanor and that involves fraud, dishonesty or moral turpitude, or if he breaches any material provision of this Agreement or substantially fails to provide the services which are required of him under the terms of this Agreement. However, prior to terminating this Agreement by reason of ▇▇▇▇▇’▇ failure to provide services hereunder or his breach of any provision of this Agreement, the Board of Directors of the Corporation or the Bank shall first give ▇▇▇▇▇ written notice specifically identifying the manner in which ▇▇▇▇▇ has breached the terms of this Agreement and the approximate date or dates on which such violations have occurred. ▇▇▇▇▇ shall have thirty (30) days from his receipt of such notice within which to cure or correct the effects of such breach and to report in writing to the Boards of Directors of the Corporation and the Bank all steps which he has taken to cure such breach. If ▇▇▇▇▇ shall not have corrected or cured such breach or diligently taken all steps which are necessary to do so within the aforesaid thirty (30) day period, the Board of Directors of the Corporation or the Bank may terminate this Agreement immediately, upon giving ▇▇▇▇▇ written notice of such termination on or after the 31st day following the date on which notice of the breach was delivered to ▇▇▇▇▇. If the breach asserted by the Board of Directors of the Corporation or the Bank is, because of its nature, incapable of being corrected or cured, then such breach shall not be cause for termination of this Agreement unless such breach shall be deemed to have caused FNB significant and irreparable harm in the opinion of a simple majority of all of the members of the Board of Directors of the Corporation or the Bank. Any decision rendered by the Board of Directors of the Corporation or the Bank which reasonably determines that such breach has caused significant or irreparable harm to FNB shall be final, binding and conclusive for purposes of this Agreement and shall not be subject to challenge by ▇▇▇▇▇. If such breach is not deemed to have caused FNB significant and irreparable harm, then this Agreement may not be terminated

 

 

by reason thereof, but any future breach of a similar nature shall be cause for immediate termination by the Board of Directors of the Corporation or the Bank upon giving ▇▇▇▇▇ written notice thereof. If this Agreement is terminated by FNB for cause pursuant to this subparagraph, then FNB shall be under no obligation to provide Compensation or Benefits to ▇▇▇▇▇ following the effective date of such termination, except for such Compensation and Benefits which have accrued and which have not been paid or furnished as of the effective date of such termination.

(d)       Removal Without Cause. The Corporation or the Bank shall have the right at any time upon written notice to ▇▇▇▇▇, to terminate the employment of ▇▇▇▇▇ hereunder. If such termination by the Corporation or the Bank is not by reason of disability pursuant to paragraph (b), of this Section 5 or for cause pursuant to paragraph (c) of this Section 5, FNB shall be obligated to continue to pay the Compensation and provide the Benefits to ▇▇▇▇▇ for twenty-four (24) months, at the rate, times and intervals at which such Compensation and Benefits are being paid or provided as of the date on which FNB terminates the employment of ▇▇▇▇▇.

(e)       Breach by FNB. If FNB breaches any provision of this Agreement (specifically including, but not limited to, substantial diminution in the position and authority of ▇▇▇▇▇ as set forth in the preceding paragraphs), ▇▇▇▇▇ may leave the employment of FNB whereupon he shall be under no obligation to perform his duties hereunder and shall have no further liability or obligations under any provisions of this Agreement. In such event, however, FNB shall be obligated to continue to pay the Compensation and provide the Benefits to ▇▇▇▇▇ for twenty-four (24) months, at the rate, times and intervals at which such Compensation is being paid on the date on which FNB commits a breach of this Agreement.

                                                 (f)      By ▇▇▇▇▇. ▇▇▇▇▇ may terminate this Agreement effective as of

 

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December 31st of any year during the Term of this Agreement for any reason, by giving the Boards of Directors of the Corporation and the Bank written notice thereof on or before December 1st of such year. If ▇▇▇▇▇ terminates this Agreement pursuant to this subparagraph, FNB shall be under no obligation to pay any Compensation or provide any Benefits to ▇▇▇▇▇ following the effective date of such termination, except that FNB shall remain liable to pay the Compensation and Benefits which have accrued but which remain unpaid or unfurnished as of the effective date of such termination.

(g)       At End of Term. If FNB terminates ▇▇▇▇▇’▇ employment hereunder as of the end of the Term or any extension thereof, FNB shall be obligated, as severance payments, to continue to pay the Compensation and provide the Benefits to ▇▇▇▇▇ for a period of twenty-four (24) months after such termination at the rates, times and intervals at which such Compensation and Benefits are being paid or provided as of the date on which FNB terminates the employment of ▇▇▇▇▇. If ▇▇▇▇▇’▇ employment by FNB continues after the end of the Term or any extension thereof, no severance payments will be provided to him.

(h)       Termination After a Change in the Ownership or Effective Control. If ▇▇▇▇▇’▇ employment is terminated (i) by the Corporation or the Bank and such termination is not by reason of death, disability or for cause as set forth in this Section 5, (ii) or by ▇▇▇▇▇ pursuant to Section 5 of this Agreement, and such termination is within two years after a “Change in the Ownership or Effective Control”, then the Corporation and the Bank shall be obligated, jointly and severally, to continue to provide ▇▇▇▇▇ with the Compensation and Benefits provided for three (3) years after such termination (in lieu of other continuation payments provided in this Agreement). Such Compensation and Benefits shall be paid and provided at the rate, times and intervals at which such compensation and benefits were paid or

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provided on the date of such termination of ▇▇▇▇▇’▇ employment. A Change in the Ownership or Effective Control of the Corporation or the Bank occurs under the terms of Treasury Regulations, Section 1.409A-3(i)(5).

(i)        Limitation on Payments. If there is a determination, either made or confirmed by FNB’s outside legal counsel, that any payment to ▇▇▇▇▇ pursuant to this Agreement or otherwise would be subject to the excise tax imposed by Section 4999 of the Code or any similar tax imposed by federal, state or local law, ▇▇▇▇▇ shall receive a payment such that, after payment of all taxes on such amount, leaves a balance sufficient to pay the excise or similar tax.

(j)        Compliance with Section 409A. Payments made pursuant to this Agreement that are subject to the provisions of Section 409A of the Code may be made only in compliance with that Section. ▇▇▇▇▇ agrees to any changes in the timing of distributions or other provisions that are necessary to assure compliance with Section 409A.

FNB agrees to indemnify ▇▇▇▇▇ to the maximum extent permitted under applicable law for any liability incurred by ▇▇▇▇▇ in his capacity as an officer or director of FNB. In such right or rights of indemnification which ▇▇▇▇▇ shall have as set forth hereunder or in the By-laws of the Corporation or the Bank as of the date ▇▇▇▇▇’▇ employment hereunder is terminated shall survive such termination. FNB shall obtain directors’ and officers’ liability insurance with coverage relating to all acts and omissions alleged to have occurred during the Term of this Agreement.

 

FNB, including expenses for travel, entertainment and similar items on behalf of FNB business. FNB shall reimburse ▇▇▇▇▇ for all such expenses upon the presentation by ▇▇▇▇▇, from time to time, of an itemized account of such expenditures. In addition, FNB shall provide ▇▇▇▇▇ with an automobile for his use during the Term.

(a)       During the Term of this Agreement and for a period of one (1) year thereafter, ▇▇▇▇▇ shall not, directly or indirectly, be employed by or enter into a consulting arrangement with or otherwise agree to perform personal services for any other bank or financial institution doing business in ▇▇▇▇▇▇▇ County, Pennsylvania; directly or indirectly employ or seek to employ any person employed at that time by FNB, or otherwise encourage or entice any such person to leave such employment, or solicit any customers or vendors of FNB on behalf of or for the benefit of any such bank or financial institution; provided, however, that if ▇▇▇▇▇ terminates this Agreement by reason of a breach of this Agreement by FNB or if ▇▇▇▇▇’▇ employment is terminated due to a change of control, this restrictive covenant shall be null and void and ▇▇▇▇▇ shall be entitled to be employed by any bank or financial institution doing business in ▇▇▇▇▇▇▇ County, Pennsylvania or in any other location.

(b)       ▇▇▇▇▇ covenants and agrees that at no time during the term of this Agreement, nor at any time following any termination of employment ▇▇▇▇ ▇▇▇▇▇ communicate, furnish, divulge or disclose in any manner to any person or entity any Confidential Information (as defined in 8(c)) without the prior express written consent of FNB. After a termination of employment, ▇▇▇▇▇ shall not, without the prior written consent of FNB, or as may otherwise be required by law or legal process, communicate or divulge such Confidential Information to anyone other than FNB and its designees.

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(c)       For purposes of this Section, “Confidential Information” shall mean financial information about FNB, contract terms with vendors and suppliers, customer and supplier lists and data, trade secrets and such other competitively-sensitive information to which ▇▇▇▇▇ has access as a result of his positions with FNB, except that Confidential Information shall not include any information which was or becomes generally available to the public (i) other than as a result of a wrongful disclosure by ▇▇▇▇▇, (ii) as a result of disclosure by ▇▇▇▇▇ during the term of this Agreement which he reasonably and in good faith believes is required by the performance of his duties under this Agreement, or (iii) any information compelled to be disclosed by applicable law or administrative regulation; provided that ▇▇▇▇▇, to the extent not prohibited from doing so by applicable law or administrative regulation, shall give FNB written notice of the information to be so disclosed pursuant to clause (iii) of this sentence as far in advance of its disclosure as is practicable.

(d)       ▇▇▇▇▇ acknowledges that monetary damages will not be an adequate remedy for FNB in the event of a breach of this Section 8, and that it would be impossible for FNB to measure damages in the event of such a breach. Therefore, ▇▇▇▇▇ agrees that, in addition to other rights that FNB may have, FNB is entitled to an injunction preventing ▇▇▇▇▇ from any breach of this Section 8.

This Agreement shall inure to the benefit of and be binding upon FNB, its successors and assigns, including, without limitation, any person, partnership, company or corporation which may acquire all or substantially all of the assets or business of FNB or into which FNB may be liquidated, consolidated, merged or otherwise combines, regardless of the identity or form of the surviving entity, and shall inure to the benefit of and be binding upon

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▇▇▇▇▇, his heirs, and personal representatives.

Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by registered mail, return receipt requested, correctly addressed to ▇▇▇▇▇’▇ residence, in the case of ▇▇▇▇▇, or to its principal office, in the case of FNB. Copies of all such notices shall simultaneously be personally delivered or sent by United States first class, registered or certified mail, or by a nationally-recognized overnight delivery service, to ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esquire, ▇▇▇▇ ▇▇▇▇▇ LLP, ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇^▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇.

Waiver by either party of the breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by the other party.

This Agreement shall not limit or in any way affect any benefits which ▇▇▇▇▇ may be entitled to receive under FNB’s pension plan or any other benefits in which ▇▇▇▇▇ has a vested interest as of the date of this Agreement.

Should any provision contained herein be determined by decree or court or other judicial body to be illegal or unenforceable, such provision shall be considered null and void and the remainder of this Agreement shall remain in full force and effect and shall be construed without reference to any such provision. Nevertheless, it is the intention of the parties hereto that any such invalid or unenforceable provision shall, if possible, be construed and enforced in such

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a manner as to make the same valid and enforceable under applicable law and consistent with the reasonable intention of the parties as expressed in such provision.

Questions pertaining to the validity, construction and administration of this Agreement shall be determined in accordance with the laws of the Commonwealth of Pennsylvania.

This Agreement constitutes the entire understanding and agreement between the parties hereto with regard to the subject matter hereof, and there are no other agreements, conditions, representations or understandings, oral or written, expressed or implied, with regard to the subject of this Agreement. This Agreement may be amended or modified only by a written instrument executed by the parties hereto.

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                        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

 

 

 

 

 

 

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